Institutional determinants of insurance penetration in Africa.

The Geneva papers on risk and insurance. Issues and practice Pub Date : 2022-10-16 DOI:10.1057/s41288-022-00278-2

Mamadou Bah, Nelson Abila

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Abstract

This paper investigates the institutional determinants of insurance demand in Africa. We used a panel of 42 countries over the period 1996-2017. A system GMM approach was used for the estimations. Consistent with previous results, we find that institutional quality has positive and significant effects on insurance penetration in Africa. Specifically, regulatory quality, rule of law, control of corruption, political stability and absence of violence, and government effectiveness are the five institutional quality indicators that have positive and significant effects on the demand for total insurance and life insurance. However, only regulatory quality, control of corruption and government effectiveness are positively associated with non-life insurance demand. This indicates that governments should improve the business environment and strengthen the political environment to boost insurance development in Africa.

Supplementary information: The online version contains supplementary material available at 10.1057/s41288-022-00278-2.

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非洲保险渗透率的制度决定因素。

本文研究了非洲保险需求的制度决定因素。我们使用了 1996-2017 年间 42 个国家的面板数据。采用系统 GMM 方法进行了估计。与之前的结果一致，我们发现制度质量对非洲的保险渗透率有积极而显著的影响。具体而言，监管质量、法治、腐败控制、政治稳定和无暴力以及政府效率这五个制度质量指标对总保险和人寿保险的需求有积极和显著的影响。然而，只有监管质量、腐败控制和政府效率与非寿险需求呈正相关。这表明，政府应改善商业环境并加强政治环境，以促进非洲保险业的发展：在线版本包含补充材料，可查阅 10.1057/s41288-022-00278-2。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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The Geneva papers on risk and insurance. Issues and practice

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